Delivering a Global Settlement Network for Business
JPMorgan Xign was formed by the recent acquisition of Xign Corporation by JPMorgan Chase. JPMorgan Xignâs on-demand service, the JPMorgan Business Settlement Network, transforms financial settlement operations through a highly efficient, electronic settlement network that connects buyers with their suppliers. With JPMorgan Xign, global organizations dramatically lower payables processing costs and unlock working capital through early payment discount programs. The ability to tap the âhidden profitsâ in accounts payable increases earnings and returns on short-term cash.
JPMorgan Xign Value
Why do many global organizations continue to settle business transactions with paper purchase orders, paper invoices and paper checks? In most cases finance executives do not understand the strategic value of a business settlement network. Consequently the reliance on paper for settling business transactions can cost the average Fortune 1000 company millions of dollars each year.
But thatâs starting to change. Todayâs accounts payable (AP) departments are becoming more savvy, earning annualized cash returns of 36 percent or more just by paying bills earlier, thus improving the bottom line.
The Benefits
The JPMorgan Business Settlement Network creates the equivalent of a credit card network for business. In addition to reducing accounts payable processing costs by 50 percent or more, JPMorgan Xign helps global organizations:
- Optimize payablesâ working capital. By compressing the settlement cycle from weeks or months to days, JPMorgan Xign dramatically expands early payment discount programs to deliver double-digit, risk-free cash returns. JPMorgan Xignâs advanced discount management features support standard, prorated and dynamic discount terms to maximize savings potential. At a 36 percent annual return, a standard 2 percent 10 net 30 discount represents one of the great earning opportunities in corporate finance. Even larger returns are available from many small and midsize suppliers that are hungriest for cash and willing to offer discounts as high as 4 percent 3 net 30. These returns can be achieved without impacting cash levels or reducing days payable outstanding (DPO).
- Onboard thousands of suppliers. The JPMorgan Business Settlement Network includes tens of thousands of global suppliers, and all current and future disbursing customers can transact with these suppliers immediately. With years of experience in supplier targeting and enrollment campaigns, JPMorgan Xign helps buyers recruit, enroll and train new suppliers quickly and efficiently. Following JPMorgan Xign best practices, customers are enrolling 80 percent of targeted suppliers within eight to 10 weeks.
- Obtain rapid results and ROI. The JPMorgan Business Settlement Network does not require an ERP system overhaul, huge integration effort or major investment in hardware and software. Because the JPMorgan Xign service is delivered as a Web-based hosted application, buyers and suppliers simply log in from a Web browser to manage the processing of purchase orders, invoices, payments and early pay discounts.
- Track and Improve Financial Settlement Performance. With more than $100 billion in transaction history, JPMorgan Xign has the most comprehensive financial settlement database of its kind. JPMorgan Network Insight⢠applies proprietary analytics to JPMorgan Xign transaction data to compare individual company performance against aggregate results by industry and spend category. This gives global corporations a powerful foundation for improving financial settlement performance.
